(Read more on the multifamily market.)
LAS VEGAS-MGM Mirage says the cost of its CityCenter integrated resort here has risen by $400 million in part due to an additional 670,000 sf of construction. The increase, from $7 billion to $7.4 billion, is being offset by an expected $2.7 billion in residential sales, up $200 million from previous expectations, resulting in an estimated net cost of $4.7 billion, excluding land costs and pre-opening expenses, according to MGM.
CityCenter is a small city rising in the heart of the Las Vegas Strip between the Bellagio and Monte Carlo resorts. The development includes 2,700 private residences, two 400-room non-gaming boutique hotels, a 60-story, 4,000-room resort casino and a 470,000-sf retail and entertainment district.
Sales of residential units commenced in January 2007. Through April 19, sales contracts have been executed that are expected to result in gross sales proceeds of $800 million. These contracts include 10% non-refundable deposits at signing, with a second 10% deposit due in six months from contract signing. MGM says the sales prices on a per-sf basis are above previous expectations but did not reveal the current per-sf figure or its previous expectation.
MGM is currently converting reservations to sales contracts for Vdara, a 1,543-unit condominium-hotel tower on the property. Approximately 700 reservations were taken during the project's initial release. MGM anticipates being able to convert 60% of them to contracts. About 42% (300) of the total have been converted to date. MGM also has taken in 630 reservations for Veer Towers, which will have 670 units in twin towers, and only recently began converting those into sales contracts.
Approximately 90% of the 227 residential units at the Mandarin Oriental development on the site have been put under contract. Looking ahead, MGM expects to release approximately 200 residences at the Harmon later this year.
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